When evaluating an investment, start with a simple framework:
1. Expected cash flow.
2. Tax impact.
3. Time required to recover capital.
4. Long-term income potential.
Most people only focus on step one.
The investors who understand all four can view the same opportunity very differently.
The speed at which capital returns to you can dramatically influence future investment decisions and portfolio growth.
The math becomes much more interesting when multiple value drivers work together.
Share this with someone who only evaluates investments on projected returns.